Taking a pause to plan for electrification future the right move
By Lethbridge Herald on August 12, 2023.
AT THE LEGISLATURE
Nathan Neudorf – UCP MLA for Lethbridge East
The topic of affordability and utility costs continue to be top of mind for many Albertans. Everyone is seeing the impact of inflation on the cost of goods and people are really watching their electricity bill and asking the question – why is my bill so high?
As Minister of Affordability and Utilities it is my job to answer that question. Let’s begin with some context. Alberta is unique amongst provinces for its energy only market – meaning generators are only paid for the power they produce.
This system was developed to allow for healthy competition amongst generators to keep prices low and has worked well for over two decades.
As we have reached the end of the coal generation era, new generation needs to come online to replace this loss. In recent years, we have seen incredible growth in renewables – mainly wind and solar. Currently, Alberta is the leading jurisdiction in Canada for wind and solar generation with 3,400 megawatts under construction with an estimated value of over $2.7 billion of private funds invested.
While there is tremendous potential in this industry, it brings forth some challenges.
Alberta’s Electric System Operator (AESO) 2023 Reliability Requirement Roadmap denotes that “an increasing proportion of electricity is coming from renewable or other low-carbon sources.” While this shift creates investment opportunities and helps the province progress towards a decarbonized electricity system and economy, it also presents significant operational challenges and risks to the reliability of our electricity grid.
So where do we go from here?
I think it’s important to state at the outset that I believe most Albertans want a cleaner grid with less carbon emissions – which is why it is specifically addressed in my mandate letter. We know that to get there we will need new technology, but we need to consider the challenges we will face if we move away from fossil fuels too fast. Balancing new technologies to achieve reliability must be considered as we look to the goal of carbon neutrality by 2050.
The fact of the matter is that while we are getting closer to technology that will allow us to utilize Small Modular Reactors (SMRs), hydrogen and even Carbon Capture Utilization & Storage (CCUS) we are not there yet. Abandoning coal-generation too quickly has exacerbated the cost of utility bills and we don’t have enough stable baseload generation to meet growing demands.
At this point in time, renewable generators can increase the cost of your bills in two ways.
First is through distribution costs; nearly every new field needs a new connector line. As a result, you are paying to get them built, and then paying to get the power to your home. Second is intermittency. Renewables are difficult to predict so every time they don’t produce power, you have to get it from somewhere else. In addition to distribution and intermittency are peaker plants; these are power plants that only run when there is an extremely high demand for electricity or when supply drops off unexpectedly like during “rush” hours.
These are the busier times of day – generally when most people are home cooking and running heaters or air conditioners. Because peaker plants only supply power occasionally, this power commands a much higher price per kilowatt hour than the base load power. Peaker plants are, and always have been an important part of Alberta’s electricity system as they are used multiple times each day.
We want to build an electrical grid and system that is high quality, affordable, and will serve Albertans for decades while simultaneously ensuring that we are responsible with rate and taxpayers’ money. Taking six months to better plan for the next 25 years of electrical generation is not only needed but is prudent and good policy. Alberta has a great future ahead of us and we can build it together, let’s take the time to do it well and make it last.
15-14
Notwithstanding the need to plan , the 6 month pause is nothing but a nod to oil and gas . Neudorf appears to not understand the dire need for environmental controls and a cleaner grid. Not suggesting for one moment an immediate shut down of oil production , but if the extreme weather across the globe doesn’t convince even the most die hard climate skeptics then I don’t know what will.
The moratorium is nothing but a cynical attempt to stifle renewables even if it is temporary and at the same time bow to oil and gas.
Danielle’s Smiths fawning to the oil and gas industry is nothing new and it would appear Neudorf is simply following in her wake.
Every report since has confirmed the need for planning , but without exception , they are critical of this move driven by Neudorf both environmentally and economically.
Disappointed with this development but surprised? Not at all!
“With freeze on renewables and vow to ignore federal net-zero rules, Alberta’s on its way to being a three-alarm international dumpster fire! The only person who can be really happy about yesterday’s opera buffa in Alberta is Justin Trudeau.”
http://www.albertapolitics.ca
And, the expected Take Back Alberta influence on the Smith UCP is mentioned here:
“Why Did Danielle Smith Block Alberta’s Renewable Energy? If she has a strategy, what is it? Here are some possible answers.”
http://www.thetyee.ca/Analysis/2023/08/08/Danielle-Smith-Alberta-Energy-Surprise-Block/
Nathan Neudorf:
Spoken like a true Luddite.
Your words don’t wash. I think you have it set on “spin cycle”, as does the doomed UCP.
You have to give Nathan a break. Who knew you needed to upgrade transmission lines for new generation projects? Too sciency, I think.
Ok everyone running around with their hair on fire and defiling Neudorf here’s something to think about
https://www.manhattancontrarian.com/blog/2023-6-29-world-now-wasting-more-than-1-trillion-per-year-on-investing-in-useless-renewables
In a nutshell reply: Stop gaslighting. Your “leader” is complicit as well as yourself in trying to BS your way out of the issue.
After her last press conference, it is simply a matter of the voters realising how much hot gas and effluent flows from the UCP leadership.
How many more Canadian communities have to burn, or at the very least be evacuated before you people start doing basic math?
Here’s a question for you: How much has Canada spent in Disaster relief and response in the last 6 years?
And who pays for it?
So far, not your Oil/Coal/Gas Overlords. (Hint: The people paying for it are the same people that are paying an ever-increasing price for that damned TMX pipeline that’s part of the “Ottawa does nothing for Alberta” BS.)
But a reckoning is coming. BOY is it coming.